Shares of Techno Electric & Engineering Company Ltd fell 2.71% to Rs 1,240.60 on Thursday, November 13, even after the company reported robust financial performance for the September 2025 quarter (Q2 FY26).
The decline is largely attributed to profit booking and margin contraction, which overshadowed the company’s otherwise stellar revenue and earnings growth.
Techno Electric’s revenue surged 91.1% YoY to Rs 843 crore, compared to Rs 441 crore in the year-ago quarter, driven by accelerated project execution. EBITDA rose 58.5% YoY to Rs 111 crore from Rs 70.2 crore. However, the EBITDA margin narrowed to 13.2% from 15.9%, indicating rising input and execution costs.
The company’s net profit grew 10.3% YoY to Rs 104 crore, up from Rs 94.2 crore, reflecting operational strength but limited margin leverage.
The decline in margins, which could pressure short-term profitability, could have prompted some traders to book gains after the stock’s recent uptrend.
Despite the fall, the company’s strong revenue momentum and healthy order book signal sustained growth potential in the power infrastructure sector.
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